Projects in Pakistan: Chinese company planning to move out

Published: June 17, 2014
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Cites losing confidence in country due to lack of facilities. CREATIVE COMMONS

Cites losing confidence in country due to lack of facilities. CREATIVE COMMONS

LAHORE: Despite efforts of the current government to provide all possible infrastructural facilities to the business community, particularly foreign investors, there still exist many loopholes especially in the power sector. These issues are forcing foreign investors to relocate their businesses to another country.

Haier Ruba SEZ – one of the leading Chinese company – is losing its confidence in the Pakistani market. The company has attracted 11 Chinese projects till date that are working in the country.

The company is contemplating to move back to China due to the unavailability of the required facilities, despite multiple commitments from competent authorities, said Shah Faisal Afridi, president of the Pak-China Joint Chamber of Commerce and Industries (PCJCCI).

The Chinese group had requested for a load extension for Haier Ruba Zone from 2 megawatts (MW) to 4.825MW. The request was approved in July 2012. Even after two years, the cable for supplying the required voltage has not been provided to the project by Lahore Electric Supply Company, which is hampering the working of Haier Ruba SEZ zone.

The Chinese management is now planning to move this project back to China, as Pakistani authorities are not addressing their issues.

Afridi observed that the departure will not only become a source of embarrassment for the country but it will have a negative impact on the other projects being run with Chinese cooperation.

Haier Ruba zone is a flagship project of the Pak-China joint ventures in the private sector, located at the outskirts of Lahore.

The zone is known for producing electric appliances. “Its significance can be determined by a record of the visits by the highest ranking dignitaries including the president and prime minister of China. Unfortunately, the company is trailing back to China as no government body is paying attention to their issues,” Afridi said.

Afridi asserted that the non-serious attitude of authorities could be detrimental to business growth. He appealed to the concerned quarters to intervene to devise a remedial measure before an irreparable loss takes place between the exemplary bilateral economic relations between China and Pakistan.

Published in The Express Tribune, June 17th, 2014.

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Reader Comments (20)

  • Jun 17, 2014 - 10:08AM

    it is conspiracy by Modi, he wants to sell electricity to Pakistan.

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  • Paindoo
    Jun 17, 2014 - 10:08AM

    Not good this, CM should see to it and make sure that such incidents are not repeated in the future.

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  • Pork-we-eat
    Jun 17, 2014 - 10:12AM

    I am a Chinese working in Lahore for the past 2 yrs and find the attitude of Pakistani authorities totally appalling. This is not true with Pakistani people who are very friendly and even invite me home for a drink many a times.

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  • Raj
    Jun 17, 2014 - 10:27AM

    Well, so much for taller than the mountains, deeper than the oceans, and sweeter than honey.

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  • Usman
    Jun 17, 2014 - 10:35AM

    Because the company’s profits are not going into the Ittefaq group, it’s way down on the priority list.

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  • Aschraful Makhlooq
    Jun 17, 2014 - 10:46AM

    This is going to happening in Pakistan only due to excessive dependence on US and US’ aid because Pakistan’s main focus has been first to protect US’ interests within Pakistan and later the other countries…..

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  • huma
    Jun 17, 2014 - 10:57AM

    This project was started by Musharraf so the Sharifs will slowly (and painfully) let it die.Recommend

  • ali
    Jun 17, 2014 - 11:37AM

    @Sudhanshu Swami:
    Dear read it properly the company is about Electric Appliances not about Kala Bagh Dam for which India is spending 1Billion Rupees Annually..& unfortunately we have corrupt politicians those seek for there bank balances ..Like PML-N, ANP, PPP..

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  • chai
    Jun 17, 2014 - 12:09PM

    @Sudhanshu Swami:
    idiot .. even if India & Pak agree for a contract today .. It would take at least 3 years to setup up the grid & the cost of setting up the grid is much higher than cost of export.

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  • Omar Ali Khan
    Jun 17, 2014 - 12:39PM

    Whilst obviously concerning, one must take Mr Afridi’s statements with a grain of salt. The Pak-China Joint Chamber of Commerce and Industries is a business lobby group and like any other business lobby group, it serves its members in part by painting a deliberately dire picture to get the attention of policymakers and obtain priority access to state services. I suspect the company’s decision to leave Pakistan or not will ultimately depend more on its ability to build market share (and generate a viable return on investment) rather than any perceived or actual lack of progress on the policy front.

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  • Jun 17, 2014 - 1:24PM

    @chai
    I wont call you idiot for not getting humor. You are a simple person, I wont abuse you for that.

    @ali
    You are right, that corruption is bigger cause for most of failures. Leaving China will induce feeling in minds that there is lack of infrastructure, ex Railway, Electricity etc . These opens door for trade with India, and Modi is business minded person.

    My comment was not a serious comment with literal meaning, it was sarcastic, imitating few Pakistanis who are delusional and keep escaping from root cause.

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  • sharabi
    Jun 17, 2014 - 1:54PM

    @chai
    who say so?
    Have you ever been expose to High Voltage Transmission or Distribution system?
    Do not consider every reader on this site is Non Technical.
    6-7 months are more then sufficient for this side of Boarder but for Pakistani side?

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  • Muhammad Rizwan Ali
    Jun 17, 2014 - 2:32PM

    Just want explanation from NAWAZ SHARIF

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  • Ali
    Jun 17, 2014 - 3:10PM

    @Sudhanshu Swami:
    I would congratulate Indians on choosing the right person for there nation..
    Modi have the capacity to resolve all long outstanding issue between both nations..
    But whether he will take interest or he will care for his popularity..its a million dollar question for a true leader.

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  • Jun 17, 2014 - 6:17PM

    @Ali
    nobody can uproot corruption from India or Pakistan in near future. It looks like that India is in right direction though, by having clean image PM with decisive mandate.
    Pakistan is facing various problems, those add fuel in fire, and in such situations people become more selfish (ie corrupt) and they care about themselves rather than nation. Leaders always exploit emotions, They keep deviating focus from basic necessities and divert minds to emotional issues. It is to play with emotions, hard to solve problems.
    What modi will do, we can get hints what he did in Gujrat. Situation in nutshell is Gujrat have quite expensive electricity but Gujarati people dont complain ! So we can assume, that there will be progress, corruption will be controlled and that will come with happily bearable cost.
    (I gave answer, give me million dollar, negotiable )

    Pakistan have more resources than India, and can progress more, but have to focus on development.

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  • ali
    Jun 17, 2014 - 7:07PM

    @Sudhanshu Swami:
    Dear Come to pakistan..we need such Brains to resolve all the outstanding matters between both the countries…

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  • Singh
    Jun 17, 2014 - 7:46PM

    @Pork-we-eat:
    who are very friendly and even invite me home for a drink many a times.
    Drink what kind?
    Jack or Captain Morgan?

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  • lohana
    Jun 17, 2014 - 7:49PM

    @Ali:
    he is more interested in solving local/national problems. he isnt the one doing jingoism of capturing PoK region over which we have cultural and historical claim. Sharda Peeth in PoK is proof of that. but we dont engage in jingoism. we know one day the region will come to us. But Pak never learns, first they gave up Kashmir in order to get Hyderabad, Liaquat Ali was offered Kashmir but he refused to take Kashmir valley and pressed on the claim over Hyd. then the obsession to annex Kashmir, Bengal was lost due to Kashmir obsession. If Pak continues to do jingoism over Kashmir it will lose whatever it has currently. Karachi sambhalta nahi Kashmir lekar achaar banaoge. jo ho raha hai Pakistan main yeh sab Kashmir pe kabza karne ki dirty game ka outcome hai. Kaantey Boye Babul k, Aam kaha se Aaye.

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  • Jun 17, 2014 - 8:26PM

    @ali
    Dear Indus valley brothers,
    Insha’Allah. Peace and progress will be in region. We have to initiate. May be in near future there will be more exchange of trains and brains.
    (by the way, I live in Bikaner, that is on border with Pakistan ! )

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  • Najeeb ullah
    Jun 17, 2014 - 9:58PM

    Business friendly government..what a joke

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